Home Services
Tankless Water Heater Cost
Published September 24, 2026 · Last updated September 30, 2026
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The short answer
A tankless water heater costs about $2,641 installed on average, with most homeowners paying $1,406 to $3,902. That's more than a standard tank, which usually costs about $882 to $1,826.
Tankless heaters last longer, often 20 years compared with 8 to 12 for a tank, and cost less to run. Whether it pays off depends on how long you'll stay and what upgrades your home needs.
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What a tankless water heater costs
Price range
- Average: about $2,641
- Typical range: $1,406 to $3,902
- Permits, electrical upgrades, and removing the old heater: often another $200 to $500
Not a quote or an offer. Your price comes from the installer. Source: Angi, 2026.
What moves the number
- Gas or electric. Gas units often need new venting and a bigger gas line. Electric units may need a bigger electrical service.
- Size. Measured by how many gallons per minute it can heat. More bathrooms running at once means a bigger unit, or two units.
- Switching from a tank. Converting usually costs more than replacing an existing tankless unit.
- Where it goes. Wall-mounted units free up space, but may need new plumbing runs.
Tankless vs. tank water heater
| Tankless | Tank | |
|---|---|---|
| Installed cost | About $1,406 to $3,902 | About $882 to $1,826 |
| How it works | Heats water only when you use it | Keeps a tank of water hot all day |
| Life expectancy | About 20 years | About 8 to 12 years |
| Running out of hot water | Doesn't run out, but can hit a flow limit | Can run out with heavy use |
| Energy use | Lower | Higher |
ENERGY STAR says a certified gas tankless water heater can save a family of four about $95 a year, or about $1,800 over its lifetime, on gas bills compared with a standard gas tank model.
Is a tankless water heater worth it?
It's more likely worth it if:
- You plan to stay in the home for many years.
- Your old tank has failed and you're replacing it anyway.
- You want more space, since a wall-mounted unit replaces a large tank.
- Your household doesn't run many hot water fixtures at the exact same time, or you size the unit for it.
It's less likely worth it if you're moving soon, or if the gas line, venting, or electrical upgrades would be expensive.
Another option: a heat pump water heater, which is a tank model that uses much less electricity than a standard electric tank. See water heaters.
What to ask
- "What size unit do I need for my household's peak hot water use?"
- "Does my gas line, venting, or electrical service need upgrading? What will that cost?"
- "Is it ENERGY STAR certified?"
- "How often does it need descaling or flushing, especially with hard water?"
- "What's the warranty on the heat exchanger and your labor?"
The catch: a tankless unit that's too small for your household can't keep up when two showers and the dishwasher run at once. Size it for your busiest moment, not your average day.
Keep reading
Hard water? See water treatment. Other plumbing work? See plumbing.
More home systems: HVAC · Water heaters · Plumbing · Electrical · Generators · Insulation · Solar · Water treatment · All home projects
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